Residential property analytic provider CoreLogic® recently released new analysis showing the market is making big moves, with 850,000 additional residential properties turning to positive equity during the first quarter of 2013.
In addition, the analysis shows good news for mortgages: the total number of mortgaged residential properties standing in negative equity is down by nearly 1 million from the previous quarter, moving from 10.5 million (21.7 percent) at the end of the fourth quarter of 2012, to 9.7 million (19.8 percent) in the first quarter of 2013.
The national aggregate value of negative equity decreased more than $50 billion to $580 billion at the end of the first quarter from $631 billion at the end of the fourth quarter of 2012. This decrease was driven in large part by an improvement in home prices.
“We are seeing an increase in homeowner equity as home prices continue to rise,” said Rei Mesa, President & CEO of Prudential Florida Realty in January’s issue of RISMedia’s Real Estate magazine. “This translates to a larger number of homeowners who are no longer underwater and can move up, or make a lateral move or downsize because they are now in a position to sell their home. With this lift in homeowner equity, we should experience a rise in traditional home sales.”